Bitcoin, which has been flat for most of the week, plunged about 7% to $18,200 on Thursday following a higher-than-expected consumer price index (CPI). However, the price soared to $19,903 by noon on Friday and returned to the $19,100 range by Sunday.
After September 21stcent, The top cryptocurrencies are squeeze tight Investors are risk averse on the back of growing concerns about the Fed’s next move. Last week, speculation that Switzerland’s second-largest bank, Credit Suisse, was on the brink of a Lehman-like collapse also weighed heavily on the market, with investors saying it could be a bigger threat to the global financial system. I’m guessing it will lead to a lot of confusion. .
Inflation and employment data appear to be improving in the US, suggesting the Fed may lower its 75 basis point rate hike target, although some experts say it is not there yet. I don’t think so.
Gareth Soloway, Chief Market Strategist at InTheMoneyStocks, believes:With the Fed still hiking rates aggressively, the market is by no means near the bottom. ” According to him, the economy is headed for a cliff dive and Bitcoin could fall below $12,000.
“So the first support is between 12 and 13,000. In the short term, I’m afraid there will be a bit of a rally and then a wave back down to 10k and down to 8k.” Gareth told Kitco News.
calm before the storm
Despite this, Bitcoin has remained remarkably stable despite its unusually low price volatility, giving it an edge over many assets on a relative scale. , continues to chase short-term gains to save losses that expose Bitcoin to further plunges. However, the crypto data analytics firm sees this as an opportunity for potential buyers.
“Weak hands will drop out of the cryptocurrency in 2022, and long-term traders are waiting for Bitcoin to start coming back into the limelight. If $BTC has a high social dominance, the price will usually go up. ” Santimento wrote.
Accumulation of BTC by large companies has also increased since the significant deleveraging event in mid-June, as indicated by the Accumulation Trend Score. The indicator now suggests a similar equilibrium structure to the market as it did before the 2019 bull run.
On the other hand, despite the Bitcoin big picture stay dark, traders believe the price is forming a bottom between $18,000 and $22,000. Price is now above the 300-week moving average, which has provided strong support in previous bear cycles. It’s an indicator that works. Eight Global CEO and founder Michael van de Poppe said this was “historically one of the best spots to go long the asset” and that prices bounced off the indicator in 2014 and he Recalling the bear market of 2020, he said:
At the time of writing, Bitcoin (BTC) was trading at $19,317 after gaining 1.14% over the past 24 hours.